Knowing the trends in the real estate industry is important for those who want to keep up in the business or what to get into it. A real estate trend is generally characterized by a pattern or shift in the nuances of the real estate industry that will cause changes over the course of time. For instance, one of these trends could be an increase in mortgages as a result of a shift in a country or place’s economy. The Bay Area in San Francisco is particularly susceptible to these real estate trends, as it is the 43rd largest urban area in the world, with a population of around 7.44 million people.
Some of the bay area real estate trends that have occurred recently in the year 2015 are:
• An increase in the spending of home remodeling (November 12, 2015) – as a result of rising home prices, homeowners were spending more and more on kitchen and bathroom remodeling to increase their property values.
• Decrease in homeowners selling their houses without the help of a professional (November 11, 2015) – many homeowners discovered that the process of selling a property by themselves requires a lot of work and are thus turning to the help of real estate agents and companies. Though some argue that it’s cheaper to try to sell their properties by themselves, the majority have seen that the legwork and time required to pull off a solo sale is more than hiring a real estate company to handle things for them.
• A majority agreement by Americans that owning a home is a good decision (October 16, 2015) – most Americans agree that owning a home is a good financial decision because it allows them to build equity, choose the neighborhood they live in, and allows for a safe environment. There was reported an increase of the number of renters who considered buying their own homes (from 32% to 39%).
• Home sales in the Bay Area could be stifled, despite the predicted increase for the rest of California (October 13, 2015) – because of the Bay Area’s limited supply of houses for sale on the market, experts have predicted that while the rest of California will see an increase of home sales and house availability, the Bay Area’s sales will drop.
• An increase in the demand for housing within the United States (August 20, 2015) – as more Millennials age and start their own lives, more and more are demanding extra housing. Experts predict that around 16 million additional households will be built by 2024.
More trends are expected to pop up as the New Year approaches, such as mortgage drops and an increase in the installation of gadgets within households. Experts are still trying to look at potential patterns and predict where markets will accordingly. California in particular, as one of the most populated states, will feel the effects of these real estate trends more than the other states. Thus, those living in the Bay Area and are into real estate should stay vigilant and regularly check for any changes in the trends.